The return-to-office wars have diminished workplace well-being—especially for these groups

As employers have scaled back the flexibility they offered during the height of the coronavirus pandemic, workplace well-being has diminished nationwide, according to a report published last month by the Human Capital Development Lab at Johns Hopkins Carey Business School in partnership with Great Place to Work. The annual survey of more than 1.5 million people at over 2,500 firms showed that from 2019 through 2023, workplace well-being peaked in 2020 before dwindling in the last three years.

“The COVID pandemic heightened employers’ awareness of the importance of well-being, and many of the best organizations worked to create a positive work climate,” Michelle Barton, PhD, an associate professor of practice at Carey and coauthor of the report, said in a news release. “The challenge now will be to integrate those practices into everyday work life, rather than simply as a crisis response.”

Researchers used the following five criteria to measure each company’s “climate of well-being”:

• Financial health
• Meaningful connections
• Mental and emotional support
• Personal support
• Sense of purpose

Having steadily declined since 2020, overall workplace well-being last year was only slightly better than it was in 2019. By industry, companies in the health care and retail/hospitality sectors had the poorest scores. The report also revealed demographic disparities in workplace well-being, with white, male, and older employees faring better than their Black, female, and younger counterparts. Geographically, Southern employees had the highest average well-being score: 

• South: 4.298
• West: 4.292
• Northeast: 4.25
• Midwest: 4.23

Fortune 100 companies boast better employee well-being

Employers who financially and emotionally invest in their employees’ well-being can expect big returns. The report compared the climates of well-being of the 2023 Fortune 100 Best Companies to Work For to those of the rest of the employers surveyed. The Fortune-ranked firms scored an average of 4.33, compared to 4.11 for non-ranked firms.

“Not only do the ranked firms do better with factors related to well-being, but also with financial results,” the report said. “Prior analyses show that the top-ranked workplaces also outperform their peers as measured by return on invested capital and total returns to shareholders over time.”

The Fortune-ranked companies offer strong leadership, clear communication, comprehensive benefits, competitive compensation, supportive work environments, and opportunities for professional development, the report highlighted—all of which contribute to employee retention and satisfaction.

Work climates healthier for white, male, and older employees

Just as the gender pay gap continues to favor men and last year grew for the first time in decades, male employees consistently scored higher in workplace well-being than female employees in a gap that widened after 2020. However, the 2023 gap (4.11 vs. 4.16) was still slightly smaller than it was in 2019 (4.08 vs. 4.15).

All races and ethnicities experienced their healthiest work climates in 2020, with white workers taking the top spot (4.25). Asian employees were the only ones whose well-being met or exceeded that of white workers across the five-year span. While Black and Hispanic/Latino staff achieved the same score in 2020 (4.16), a gap soon developed, with Black workers having the worst well-being from 2021 through 2023.

When stratifying the data by both gender and race/ethnicity in 2023, Asian men had the highest well-being score (4.23)—and the largest gap between their female counterparts (4.14). Black women had by far the worst well-being (4.01). Among women, white workers fared best (4.18).

“These significant differences highlight the ongoing need for organizations to address equity, inclusion, and belonging for all employees,” the report said. 

Based on existing research, the authors expected workplace well-being to decline with age. Between 2020 and 2023, though, that trend reversed for both male and female workers. What’s more, older workers, beginning with those aged 35 to 44, showed more stability in their well-being over time.

In 2023, men 55 and older had the best workplace well-being (4.28), followed by a tie between women 55 and older and men 45 to 54 (4.23). By comparison, both male and female employees 25 and younger had the worst (4.03).

Tenure, too, had an impact on workplace well-being, with employees who had been at their job fewer than two years enjoying a “honeymoon period.” From 2019 through 2023, well-being dipped among employees with tenures of two to five years. From there, though, scores generally trended upward, with veterans of more than 20 years matching rookies’ well-being.

Workplace well-being increases with seniority

With great power comes great career well-being, the report suggests. Executives and C-suite leaders reported better well-being than low-level employees, with scores of 4.55 and 4.07, respectively. 

“While managers contend with heightened job demands and conflicts, they also benefit from increased autonomy, superior management quality, and more avenues for personal growth,” the report said. “These factors, alongside elements like social support, influence, and the significance attached to work, contribute to the diminished stress levels observed among managers.”

That said, the analysis also indicates managers are at risk of being out of touch with their subordinates. Employees who had a “great deal” of confidence in management had almost twice the well-being score of those who had “very little or none.”

Flexible work environments increase employee well-being

Some jobs can’t be performed remotely and others benefit from in-person collaboration. Still, the report found a clear positive correlation between flexible work arrangements and employee well-being.

Researchers considered the percentage of a company’s workforce allowed to work remotely for a portion of the week. Firms in which 75% or more employees could work remotely part-time had the highest well-being (4.41), and those in which less than 25% of employees could do the same had the lowest score (4.2).

Similarly, the larger the proportion of employees able to work flexibly—having some agency in selecting their in-office hours—the healthier the work climate.

“For workers, flexibility provides the means to effectively manage work-life balance, addressing personal and family needs such as child care and elder care,” the report said. “For employers, it may cultivate higher levels of engagement and productivity among employees while fostering a climate of well-being.”

One limitation of this research is that the thousands of companies analyzed chose to submit their data to Great Place to Work. Meaning, the sample likely represents firms confident in their HR practices, employee sentiment, and workforce relations, the authors noted. They predict even larger well-being gaps would be present between the best and the rest in a more diverse sample.

“Improving employee well-being can be complex,” Rick Smith, PhD, faculty director of the Human Capital Development Lab and coauthor of the report, said in the news release. “Our research highlights a need for leaders to address organizational culture factors coupled with a more nuanced management approach to create a climate of well-being for all.”

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